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Airport Finance and
Investment in the
Global Economy

While there are a multitude of publications on corporate finance and financial

management, only a few address the complexity of air transport industry
finance and scant attention has been given to airport financial management.
This book deals exclusively with airport issues to rectify this. It does this with
an analysis of the theoretical concepts relevant to the subject area combined
with a detailed investigation of current practice within the industry.
Airport Finance and Investment in the Global Economy bridges the gap between
much academic research on airports published in recent years – lacking much
managerial relevance – and real-world airport financial management. This is
achieved by featuring expert analysis of contemporary issues specific to
airport finance and funding strategies, illustrated by worked examples from
a wide range of different countries to enhance understanding and create a
global perspective.
The book is designed to appeal to both practitioners and academics.
Airport-specific topics include: performance measurement and bench-
marking, valuation, tools for financial control and management, alternatives
of financing, privatisation, competition and implications of economic
regulation.

Anne Graham is Reader in Air Transport and Tourism at the University

of Westminster. Her research interests include airport management,
economics and regulation, and the relationship between the tourism and
aviation industries. Her recent books include Managing Airports (4th edition,
2014), Aviation Economics (ed. with Peter Morrell, 2015), Airport Marketing
(with Nigel Halpern, 2013) and Aviation and Tourism (ed. with Andreas
Papatheodorou and Peter Forsyth, 2008). Between 2013 and 2015 she was
Editor-in-Chief of the Journal of Air Transport Management.

Peter Morrell joined Cranfield’s Department of Air Transport in 1991 where,

until his recent retirement, he held a chair in air transport economics and
finance. He has been involved in airport projects around the world, including
in Argentina, Mongolia, Hannover, Berlin, Luton and Barcelona. He also
directed a number of major studies for the European Commission. His books
include Aviation Economics (ed. with Anne Graham, 2015), Airline Finance (4th
edition, 2014) and Moving Boxes by Air (2011). He has continuing links with
Cranfield as a visiting professor and serves on the editorial boards of the Journal
of Air Transport Management and Tourism Economics.
Airport Finance and
Investment in the
Global Economy

Anne Graham and

Peter Morrell
First published 2017
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2017 Anne Graham and Peter Morrell
The right of Anne Graham and Peter Morrell to be identified as authors of this
work has been asserted by them in accordance with sections 77 and 78 of the
Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in any
information storage or retrieval system, without permission in writing from the
publishers.
Trademark notice: Product or corporate names may be trademarks or registered
trademarks, and are used only for identification and explanation without intent
to infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Names: Graham, Anne, 1958- author. | Morrell, Peter S., 1946-
Title: Airport finance and investment in the global economy/Anne Graham
and Peter Morrell.
Description: Abingdon, Oxon; New York, NY: Routledge, 2017. | Includes
bibliographical references.
Identifiers: LCCN 2016016284 | ISBN 9781472440204 (hardback) |
ISBN 9781315566498 (ebook)
Subjects: LCSH: Airports––Finance. | Airlines—Finance.
Classification: LCC HE9797.4.F5 G73 2017 | DDC 387.7/36—dc23
LC record available at https://lccn.loc.gov/2016016284

ISBN: 978-1-4724-4020-4 (hbk)

ISBN: 978-1-315-56649-8 (ebk)

Typeset in Bembo
by Keystroke, Neville Lodge, Tettenhall, Wolverhampton
Contents

List of figures ix
List of tables xi
Prefacexiii

1 Introduction 1
1.1 Introduction 1
1.2 The airport operating environment 1
1.3 Airport traffic 5
1.4 Airport investment 9
1.5 Airport financial characteristics 10
1.6 Airport business models 13
1.7 Summary 19

2 Airport revenues and costs  20

2.1 Introduction 20
2.2 Revenues 20
2.3 Costs 30
2.4 Activities undertaken by airport operators 32
2.5 The influence of the volume and type of traffic 36
2.6 Other important factors 39
2.7 Summary 41

3 Financial statements of airports 42

3.1 Introduction 42
3.2 Fundamentals of financial accounting, reporting and
management 42
3.3 The set of financial statements 46
3.4 Airport financial ratios 57
3.5 Summary 65
vi  Contents
4 Airport financial management and control 67
4.1 Introduction 67
4.2 Budgeting and cash-flow forecasts 68
4.3 Financial planning 71
4.4 Investment appraisal 74
4.5 Financial risk management 81
4.6 Credit control and working capital management 83
4.7 Summary 85

5 Airport benchmarking 88
5.1 Introduction 88
5.2 The types and uses of benchmarking 88
5.3 Benchmarking concepts 90
5.4 Partial performance measures 94
5.5 Total performance measures 98
5.6 Practical applications 100
5.7 Summary 105

6 Valuation of airports 106

6.1 Introduction 106
6.2 Approaches to valuation 107
6.3 Accounting-based airport valuation 108
6.4 DCF models 112
6.5 Market-based models: ratio methods 114
6.6 Summary 118

7 Financing of airports 120

7.1 Introduction 120
7.2 Internal funds 121
7.3 Short-term finance 123
7.4 Equity finance and stock exchange listing 123
7.5 Debt and bond financing 129
7.6 The role of rating agencies 138
7.7 Leasing 139
7.8 Finance for US airports 140
7.9 Summary 141

8 Airport privatisation 143

8.1 Introduction 143
8.2 The development of private participation in airports 143
8.3 Privatisation concepts 146
 Contents  vii
8.4 The current situation 154
8.5 Financial consequences of privatisation 159
8.6 Participants in airport privatisation 160
8.7 Summary 164

9 Airport competition 165

9.1 Introduction 165
9.2 Competition between airports 167
9.3 Competition within airports 175
9.4 Competition and state aid 177
9.5 Summary 182

10 Airport economic regulation and slot allocation 183

10.1 Introduction 183
10.2 Rationale for economic regulation 183
10.3 The airport economic regulatory framework 185
10.4 Types of economic regulation 188
10.5 Mechanics of airport regulation 192
10.6 Experience of airport economic regulation 197
10.7 The slot allocation process 202
10.8 Summary 205

References 207
Index216
Figures

1.1 Global passenger numbers and cargo tonnes

2004–20146
1.2 1.2 aircraft movements and average aircraft size
2004–20146
1.3 Passenger numbers at world airports 2014 7
1.4 Cargo tonnes at world airports 2014 7
1.5 Forecast passenger growth per annum to 2031 8
1.6 Operating margin at top 100 airport groups
2004–201412
1.7 Operating profits at AENA Spanish airports 2014  14
1.8 Operating losses at AENA Spanish airports 2014  15
2.1 Aeronautical revenues at world airports 2013 23
2.2 Aeronautical revenues at world airports by region
201324
2.3 Airport charges for a 737-800 at selected world
airports 2013 26
2.4 Non-aeronautical revenues at world airports 2013 29
2.5 Non-aeronautical revenues at world airports by
region 2013 30
2.6 Cost breakdown at world airports 2013 31
2.7 Costs at European airports by function 2013 32
2.8 Proportion of world airports that outsource specific
airport activities 2013 33
2.9 Revenues and costs structures at Vienna and Geneva
airports 2014 34
2.10 Factors affecting airport economic performance 40
5.1 Types of performance measures 94
5.2 Performance measurement areas 97
5.3 Types of commercial performance measures 99
5.4 Example of LeighFisher benchmarking analysis for
Asia-Pacific airports 2013  102
5.5 Example of ATRS benchmarking analysis for Asian
airports 2013 103
x  Figures
5.6 Duty-free, news, gift and speciality median gross
sales per enplanement by US airport type 2013 103
5.7 Duty-free sales per square metre by world region
2013104
6.1 Ratios underlying airport transaction values
1985–2015116
7.1 Aéroports de Paris debt maturity profile, end 2014  132
8.1 Factors affecting the type of airport privatisation 148
8.2 Distribution of airports by privatisation model 2013 157
8.3 Distribution of airports with private sector
involvement by region 2013 158
9.1 Levels of airport competition 166
9.2 Hub connectivity for major European and Middle
Eastern hubs 2005 and 2015 169
9.3 Number of European airports (handling more than
1 million annual passengers in 2011) within a radius
of a two-hour drive 170
9.4 Airport expansion options 172
9.5 Key features of the EU Ground Handling Directive 176
9.6 Financial impact of the 2014 state aid rules 181
10.1 Levels of airport regulation 187
10.2 Main features of airport regulation 195
10.3 Number of Level 3 and 2 airports by world region
2015202
Tables

1.1 The world’s top ten airports by traffic 2014 9

1.2 Airport construction projects by region 2015 9
1.3 Financial performance of top 20 airport groups by
revenue 2014 11
2.1 Examples of airport charges at selected airports
201526
3.1 Fraport AG group portfolio FY2014 48
3.2 Heathrow Airport Holdings Ltd, consolidated
statement of comprehensive income FY2014 49
3.3 Heathrow Airport Holdings Ltd, consolidated
statement of financial position (as at 31 December
2014)53
3.4 Heathrow Airport fixed asset lives FY2014 54
3.5 Comparison of fixed asset depreciation periods
FY201455
3.6 Heathrow Airport Holdings Ltd, consolidated
statement of cash flows FY2014 57
3.7 Heathrow Airport – operating margins FY2014 59
3.8 Heathrow Airport – return on capital FY2014 59
3.9 Heathrow Airport – gearing ratios FY2014 60
3.10 Heathrow Airport – interest cover ratios FY2014 61
3.11 Heathrow Airport – liquidity ratios FY2014 62
3.12 Free float as percentage of total shares issued 2015 63
3.13 Ratios based on market share price for selected EU
airports FY2014 64
4.1 Typical airport management accounts – budget for
April 2015 69
4.2 Example of airport cash budget 71
4.3 Examples of drivers of airport aeronautical revenues 72
4.4 Examples of drivers of airport commercial revenues 73
4.5 Main drivers of airport operating costs 73
4.6 Airport investment appraisal cash-flow forecasts  75
4.7 Example of accounting rate of return 76
xii  Tables
4.8 Example of payback period  77
4.9 CAA WACC calculation for London Heathrow
Airport from 2014  80
4.10 Financial evaluation of alternatives  81
5.1 Airport benchmarking measures used by LeighFisher 95
5.2 Economic and financial performance measures
suggested by ACI 96
5.3 Core and key financial indicators suggested by the
Transportation Research Board  98
6.1 Airport balance sheet net asset values 109
6.2 Regulatory asset base calculation for Stansted Airport,
2006/07–2008/09111
6.3 Fraport valuation, May 2010, WACC 7.02% 113
6.4 Sum of the parts valuation: Fraport, 2015 projection 117
7.1 Large international airports with stock market
listings127
7.2 Full or partial secondary placing of airport shares 128
7.3 Heathrow Airport Holdings Ltd bonds outstanding
by currency, 31 December 2012 133
7.4 European Investment Bank lending to EU airports
2005–2015137
7.5 Examples of airport credit ratings  140
7.6 Funding sources for US airports average 2009–2013 140
8.1 Main characteristics of airport privatisation models 149
8.2 Examples of partial and full airport privatisations
since 2000 150
8.3 Privatisation at UK airports  152
8.4 Examples of concession/BOT privatisation 155
8.5 Ownership structure of top 20 airport operators with
private sector involvement by revenue 2014 156
8.6 International airport operators/investors connected to
established airport operators 161
8.7 Other international airport operators/investors  162
9.1 The EC’s view on profitability of small airports 179
9.2 Summary of the 2014 guidelines on State aid to
airports and airlines 179
10.1 Regulatory regimes at selected airports 197
10.2 Key features of the IATA slot allocation guidelines 203
Preface

The purpose of the book is to provide a broad understanding of all areas of

airport finance. The aim is to satisfy a growing number of those involved in
the airport business whether as airline users, airport managers, together with
other on-airport suppliers, financiers, investors or students. To do this, it has
been necessary to sacrifice some detail, for example in terms of accounting
and economic concepts, but references will be given to allow readers to
explore more complex topics further. A wealth of additional material is also
available in general textbooks on economics and finance. These provide a
basic understanding of areas such as risk management, corporate finance and
competition theory.
It is hoped that each area of airport finance and financial management will
be discussed in sufficient depth to satisfy both those in the industry without
any financial or economic background, and newcomers to the industry,
perhaps with some knowledge of finance. No prior knowledge is required
of accounting, economics or statistics to gain considerable benefit from the
book. In a few cases, notably in the chapters on investment appraisal and
the determination of the weighted average cost of capital, mathematical
formulae have been used, but in such cases they are based on relatively
simple compound interest concepts.
The opening chapter describes the financial trends for airports as a whole,
with developments for the major regions and airports of varying sizes
contrasted. The second chapter examines airport costs and revenues, a key
to many of the discussions in later chapters. This is followed by an analysis
of an airport’s financial statements, focusing on the major items in each
statement and relating these to those of London Heathrow Airport Ltd.
These also provide the inputs to the main financial ratios that are widely used
by airports themselves, investment analysts, commercial banks (as targets in
loan and bond covenants) and investors in support of their decisions to buy
or sell airport assets.
Next, Chapter 5 considers airport benchmarking which offers a number
of ways of evaluating airport efficiency and productivity, developing and
comparing the data found in Chapter 2, and complementing the more financ-
ially oriented ratios presented in Chapter 3. Various ways of valuing airports
xiv  Preface
as a whole or in parts are the subject of Chapter 6, using a number of ratios
that the reader will be familiar with from Chapter 3. This fits in with the
later chapter on airport privatisation, where the government owner of one
or more airport(s) will need a valuation as will a number of potential buyers.
To do so they will choose one or more of the techniques developed in this
chapter.
The growing importance of first financing and investing in airports is
recognised in Chapter 7 which looks at short- and long-term finance, equity
and other securities. Privatisation is described in Chapter 8, with governments
worldwide seeking private sector finance and management for their airports
as they prioritise areas that must remain in the public sector such as health,
defence and social services. The move to the private sector has led to more
emphasis on examining competition in the industry and how this may have
to be remedied through economic regulation, and these two topics are
addressed in the final two chapters of the book.
It would be impossible to mention all those who have contributed, know-
ingly or otherwise, to the book. Over the past years, MSc students of air
transport management at both the University of Westminster and Cranfield
University have made numerous valuable comments, pointed out errors, and
generally provided the motivation for the development of much of the mater-
ial presented here. Over the same period, air transport industry executives
attending short courses at Westminster and Cranfield have done the same,
often from a more industry-centric perspective. Special thanks must also be
extended to senior airport industry experts who have given up their precious
time over the past years to contribute to those courses (and our understand-
ing of the industry), in particular Andrew Lobbenberg, a former colleague
at Cranfield University now with HSBC, and Rafael Echervarne, former
Director of Economics at ACI and now Chief Executive at Montego Bay
airport.
We are also grateful to all our former colleagues at our respective univers-
ities for their help in discussing both industry trends and the more specific
concepts included in this book. A very special thanks must go to Hans-
Arthur Vogel who provided some of the original impetus to write this book
and was initially a joint author, and Guy Loft at Routledge for his never-
ending support and encouragement. Last but not least, we would like to
thank Ian and Ruth for their patience and understanding with putting up
with the disruption to their lives while we have been writing this book.
1 Introduction

1.1 Introduction
This chapter provides an introduction to this book and the subject of airport
finance. It begins by considering the broader environment within which
airports operate, focusing very much on political, economic and technological
developments. This is followed by an overview of airport traffic volumes
and patterns around the world and the prospects for the future. Drawing on
these general industry trends, an overview of airport investment, airport
financial characteristics and airport business models is then provided in the
next three sections. Much of this discussion is used as a basis for setting
the scene for the other chapters which explore various aspects of airport
finance in greater detail.

1.2 The airport operating environment

The airport industry is a very important economic activity which typically
operates 24 hours a day, 365 days a year. In 2014, 6.7 billion passengers
travelled through world airports and 102 million tonnes of cargo were
handled. In total there were 84.4 million aircraft movements (Airports
Council International (ACI), 2015a). Moreover it is estimated that globally
470,000 people work for airport operators with a further 4.6 million working
in retail, car hire, government agencies, freight forwarders and catering
jobs at airports (Air Transport Action Group (ATAG), 2014). This does not
include the large number of airline and ground handling jobs at airports.
Airports have often evolved over many years from their original air force
and defence role to their current commercial usage. Although nowadays air-
port operators are responsible for a common set of activities (some of which
may be outsourced) to satisfy the needs of airlines, passengers and cargo
shippers, the external environment in which airports function can have a
significant impact on the nature of individual operations, and the financial
characteristics of airports. In particular, any consideration of airport finance
needs to be undertaken against a backdrop of key developments related to
political, economic, environmental and technological developments.
2  Introduction
One of the most significant of these is the deregulation of air services
(International Transport Forum (ITF), 2015). Beginning in the US with the
domestic market in 1978 and then a number of international US routes,
deregulation has now spread to many parts of the world. Europe has a single
aviation market, and likewise a single aviation area is being established with
the ten Association of Southeast Asian Nations (ASEAN) countries (although
not at so liberal a level). A number of other domestic markets, including the
large ones of Canada, India, Brazil, Australia and Malaysia, have been dereg-
ulated. Moreover, numerous Open Skies agreements have been signed, most
commonly with the US or a European country (including the 2008 US–EU
agreement) but also in other areas such as Asia, the Middle East and South
America. More deregulation will undoubtedly follow but the resulting high
growth rates experienced by some airlines, especially the Gulf carriers, have
ignited debates as to whether totally free markets are always best and the
playing fields are necessarily level (De Wit, 2013).
A major consequence of deregulation has meant that airlines are now freer
to choose where they fly to and from, and many now set fares, frequencies,
capacities and routes solely according to commercial considerations. This has
encouraged growth and opened up many markets to much greater competi-
tion (Doganis, 2010). This in turn has had a very significant impact on the
air services at each individual airport, increasing the amount of competition
between airports and giving rise to new opportunities for airports to market
themselves to airlines. Another significant development due to deregulation
has been the emergence of new or modified airline business models, most
notably the low-cost carriers (LCCs), which have also brought new challenges
for airports and given them a strong reason to deviate from past practice.
Therefore such changes to the airline industry have had a significant impact
on the financial situation of airports, providing them with a greater incentive
to be more innovative and proactive with their airline customers.
In addition there have been some major changes in the ownership of
the airline industry (Morrell, 2007). Historically almost all the world’s major
airlines were state-owned, primarily for reasons of prestige, defence and/or
to fulfil wider objectives such as economic development and the growth of
tourism. However, attitudes have changed considerably in many countries
and many formerly state-owned airlines have been totally or partially privat-
ised. This in turn has had a major impact on the airport–airline relationship,
particularly in the area of pricing or so-called aeronautical charging.
Concurrently with this evolution of the airline industry, the way in which
airports are owned and operated has changed. In many countries, the sector
has moved from an industry characterised by public sector ownership and
national requirements, into a new era of airport management where larger
airports have become major international companies that tend to be owned
and operated by the private sector. The first major airport privatisation of
the British Airports Authority (BAA) in the UK took place in 1987 and the
trend for airport privatisation has continued since then. This has had many
 Introduction  3
consequences for airport finances, with private airports abiding by commercial
and fiscal disciplines just like any other business. Even when airports have
not been privatised, more and more are being corporatised, and/or viewed
as dynamic commercially oriented businesses with all the opportunities and
challenges that this new paradigm brings. New sources of funding are avail-
able and far greater consideration is being given to the non-aeronautical
aspects of airports, such as the generation of revenues from shops, food and
beverage and other commercial facilities. Moreover, one of the most visible
consequences of privatisation has been the emergence of international air-
port companies. These include the traditional operators at airports such as
Frankfurt, Zurich and Singapore, and newer airport companies or subsidiaries,
such as Vinci Airports and TAV Airports. Without privatisation (which is
discussed in further detail in Chapter 8), this internationalisation of the
airport industry could not have happened.
In addition to these important developments related to aviation regulation
and ownership, there are other key factors which are having a major impact
on the financial situation of modern-day airports. One such influence con-
cerns the environment where there are pressures on the whole of the avia-
tion industry to reduce its harmful noise and emission effects, and generally
to become more sustainable in areas such as energy/water use and recycling.
This can have various financial implications, for example on the airport
operator’s charging policy where it may choose to differentiate between
airlines according to the environmental performance of their aircraft. Airport
costs may also be reduced with the pressure to make more efficient use of
resources. However, there may also be negative financial impacts due to
mitigation measures that an airport has to introduce to reduce the harmful
effects of its operations or due to environmental restrictions being placed
on the airport. This may include night closures or a limitation on night
flights, which could affect the airport’s attractiveness in the eyes of its airline
customers and also limit its ability to maximise its use of its assets.
Undoubtedly in some parts of the world, the most challenging result of
such environmental concerns is that it is becoming progressively more dif-
ficult to expand airport operations or build new airports. This is particularly
the case in a number of European countries and North America, but also
in other countries such as Japan and Australia. As a result there are various
airports that remain congested and apparently unable to grow because of
the strong opposition from local communities and other environmental
groups who fiercely oppose airport expansion. However in other regions,
for example, the Middle East and China, the environmental impacts of
airport expansion tend to play a less dominant role in decisions concerning
capacity expansion.
Another high-profile issue is security. Since 9/11 and more recent terrorist
threats and events, airports have become subject to more rigid security
procedures. This includes restrictions on liquids, aerosols and gels (LAGs),
the inspection of shoes and the use of full body scans. This has been costly
4  Introduction
for airport operators, particularly if they have the sole responsibility for
providing security services themselves. Indeed in Europe security costs have
risen from less than 8 per cent of operating costs before 9/11 to over double
this now (ACI-Europe, 2013). These developments have also negatively
affected the passengers’ airport experience, and their ability and preference
to fully take advantage of the commercial facilities at the airport, especially
if the security measures have restricted their shopping time or the products
which they are allowed to purchase.
A major influence on the financial performance of many companies
is associated with technological developments and the airport industry is no
different here. Typically this will require short-term investment but, if suc-
cessful, can often result in long-term cost reductions. In addition, there can
be considerable revenue and marketing implications associated with various
types of technology, ranging from the use of social media to the analysis
of Big Data. There are many areas where the airport industry has bene-
fited from increased technology, both in the airfield and in the terminal,
which are too numerous to discuss in much detail. These can range from
accommodating new initiatives such as airport-collaborative decision making
(A-CDM) which aims to improve airport operations and streamline traffic
flows through improved technology that allows the sharing of information
in real time, or the tracking of vehicles and other movable assets using GPS-
based maps, to terminal information technology (IT) developments such as
self-service check-in and automated e-gates for checkpoints and boarding
gates, sensor technologies using beacons, and real-time ‘day of travel’ inform-
ation services sent directly to passenger apps. Spending on IT alone in 2014
was estimated to account for around US$8 billion, representing close to
6 per cent of total revenues (SITA, 2015). Some of these developments in
turn may influence the airport’s non-aeronautical revenues if they affect the
dwell time of passengers at airports. Technological enhancements in other
aviation sectors will also be influential. For example, new aircraft technology
may be costly for airports to handle, with the most notable case being the
Airbus A380 aircraft which has required changes to airport infrastructure
(such as reinforcing airfield pavements, extending runway and taxiway
widths, and enlarging gaterooms and airbridges) and modifications to other
processes (such as check-in, immigration, customs, security and baggage
handling) to cope with the larger passenger volumes.
Finally it is noteworthy to mention that the travelling public is becoming
more experienced and less loyal and are generally placing greater demands
on airports to deliver a quality product or a ‘good passenger experience’.
The more stringent security controls discussed previously may adversely
affect the overall passenger experience, whereas technology innovations may
have either a positive or negative impact depending on the effectiveness of
the technology and the passenger’s attitude towards the new technology.
Whilst it can be argued that the passenger experience will have limited
actual influence on their choice of airport (this being influenced primarily
 Introduction  5
by airline and locational factors), an unsatisfied passenger may well not
spend so much on the airport’s commercial facilities, which may have a
significant impact on its non-aeronautical revenues. Thus a constant chal-
lenge for modern airports is handling the trade-off between lower airport
costs that will filter through to lower aeronautical charges, and maximising
non-aeronautical revenues and satisfying customers.

1.3 Airport traffic

Having identified some of the key influences of the airport’s external
operating environment, the focus now shifts to considering traffic trends at
airports. Passenger traffic has grown substantially in the last few decades,
reflecting trends within the overall air transport industry. Throughout the
history of the industry, growth has always been dampened by economic
downturns and occasional external ‘shocks’, but since the turn of the century
there has been a more volatile situation as a result of an increased occurrence
of natural disasters, socio-political upheaval and other shock events such as
9/11, SARS, swine flu, the Eyjafjallajökull ash cloud, the Japanese earthquake,
the Arab Spring uprisings and the Ebola outbreak. Moreover, the recent
global economic recession had a very major impact on traffic levels in 2008
and 2009, as have government austerity measures which have followed. Fuel
prices have also been more volatile.
In spite of this more uncertain environment, passenger numbers grew on
average by more than 4.2 per cent per year during the last ten years with the
highest growth rates being experienced in the Middle East and Asia. Cargo
traffic has been more stagnant in recent years but grew in 2014. Aircraft
movements have recently grown very little, reflecting trends towards the
curbing of airline capacity and consolidated operations to improve airline
financial performance coupled with airport capacity constraints. As a result
the average passengers per movement or aircraft size has been increasing
(Figures 1.1 and 1.2).
Traditionally the two most important regions for airport traffic were
North America and Europe, but slower economic growth and more mature
demand mean that emerging economies have been taking an increasingly
large share of the traffic. For example the Asia-Pacific passenger market share
now represents 34 per cent of the total (Figure 1.3). This compares to only
21 per cent in 2004. The market share for cargo is even greater for this
region (Figure 1.4). The latest published ACI forecasts show that passenger
numbers are expected to increase by 4.1 per cent per annum to exceed
12 billion by 2031, whilst cargo operations are expected to grow by 4.5 per
cent and reach around 225 million tonnes (Airport World, 2012). The
slightly more up-to-date Boeing and IATA forecasts have similar, although
marginally less optimistic, annual passenger growth rates to 2034 of 4 per
cent and 3.8 per cent, respectively (Boeing, 2015; IATA, 2015a). The ACI
forecasts show that by 2031 around three-quarters of the passengers will be
6  Introduction

Figure 1.1 Global passenger numbers and cargo tonnes 2004–2014

Source: ACI (2015a).
Note: Left hand axis relates to passengers, right hand axis relates to cargo.

Figure 1.2 Global aircraft movements and average aircraft size 2004–2014
Source: ACI (2015a).
 Introduction  7

Figure 1.3 Passenger numbers at world airports 2014

Source: ACI (2015a).

Figure 1.4 Cargo tonnes at world airports 2014

Source: ACI (2015a).
8  Introduction

Figure 1.5 Forecast passenger growth per annum to 2031 (%)

Source: Airport World (2012).

at airports within emerging/developing economies rather than advanced

markets and the Asia-Pacific region will account for over 40 per cent of the
traffic. Figure 1.5 demonstrates that the largest annual growth rates expected
are for Asia, the Middle East and Latin America – again a similar situation is
predicted by Boeing and other forecasts.
In relation to individual airports, Atlanta Airport remains the world’s
largest airport in passenger terms, as it has done for many years, followed by
Beijing Airport which only ranked in twentieth position in 2004 (Table 1.1).
Dubai Airport, now positioned sixth, has also been rising up the rankings
and in 2014 it overtook London Heathrow in becoming the world’s busiest
airport in international passenger terms. A number of other Asian airports
such as Guangzhou, Shanghai and Jakarta, as well as Istanbul, have moved
into the top 20, whilst a number of US airports, such as Houston, Phoenix,
Detroit and Minneapolis, have dropped out. Overall the world’s top 30
airport cities handle more than one third of the global passenger traffic
with London and its six airports having the highest market share with 147
million passengers, followed by the three New York airports handling
116 million passengers (ACI, 2015a). The cargo market is even more concen-
trated with the top 30 air cargo hubs processing 53 per cent of the cargo
tonnes. Three out of the top four airports are located in Asia – the large
cargo volume at Memphis airport reflects its position as FedEx’s headquarters
and major US hub. By contrast eight of the ten largest airports by aircraft
movements are in the US which is indicative of the fact that the average size
of aircraft is smaller due to competitive pressures, shorter sectors and the
dependence on domestic traffic.
 Introduction  9
Table 1.1 The world’s top ten airports by traffic 2014

Passengers Cargo Aircraft

(millions) (000s movements
tonnes) (000s)

Atlanta 96,178 Hong Kong 4,416 Chicago 882

O’Hare
Beijing 86,128 Memphis 4,259 Atlanta 868
London Heathrow 73,408 Shanghai 3,182 Los Angeles 709
Tokyo Haneda 72,826 Incheon 2,558 Dallas FW 680
Los Angeles 70,663 Anchorage 2,493 Beijing 582
Dubai 70,475 Dubai 2,368 Denver 566
Chicago 69,999 Louisville 2,293 Charlotte 545
Paris CDG 63,813 Tokyo Narita 2,134 Las Vegas 522
Dallas/FW 63,554 Frankfurt 2,132 Houston 500
Hong Kong 63,121 Taipei 2,089 London 473
Heathrow
Source: ACI (2015a).

1.4 Airport investment

As a result of these growing and forecast traffic levels, there has been con-
siderable pressure on the airport industry to increase its capacity and invest
in new infrastructure. As of January 2015 there were over 2,300 airport
construction projects (expansion or new projects) identified worldwide,
representing over US$500 billion investment (CAPA, 2015a). Some of these
are for very long periods of time with lengthy master plans, for example
Mexico (to 2069), Rome (to 2044) and Stockholm (to 2043), but some are
also very short-term. Table 1.2 shows this investment split by region. Europe
has the greatest number of construction projects whilst Asia-Pacific ranks
first for investment. This is primarily because of the considerably greater
value of projects in Asia-Pacific (and the Middle East), especially related to
new airports. Indeed in July 2015 it was estimated that 340 of the airport

Table 1.2 Airport construction projects by region 2015

Region Number of projects Investment (US$billion)

Asia Pac 543 190.8

Europe 751 103.6
N America 485 91.4
M East 64 84.5
Africa 173 39.7
Lat Am 305 33
Total 2321 543
Source: CAPA (2015a).
10  Introduction
construction projects were new airports with 178 in the Asia-Pacific region.
Fifty-four of these were in China, 39 in India and 30 in Indonesia. There
were just under 50 in Europe, situated mostly in central and eastern regions,
and only 10 were in North America (CAPA, 2015b).
Clearly the choice between building new airports and/or expanding
existing ones is dependent on many factors, especially government policy
and its long-term objectives in relation to the development of air transport.
The economic appraisal for airport investment needs to take account of all
these factors (Jorge-Calderon, 2014). In many emerging economies where
greater than average traffic levels are being forecast, many current airports
are unable to cope with the traffic volumes and this, combined with both a
general desire to use air transport to support economic development and
generally less resistance to expansion from an environmental angle, has
encouraged the building of new airports. By contrast in more developed or
advanced economies the difficulties in finding suitable new sites, as well as
greater opposition because of environmental concerns, often mean that
expanding current airports is the more favoured option. In fact an analysis
of large projects planned for 2014–2020 shows that for advanced economies
438 are for existing airports and 23 for new airports, whereas for emerging
and developing economies the corresponding numbers are 570 and 261,
respectively (ACI, 2015b). However, many argue that this will not be
sufficient to meet the forecast demand. For example within Europe,
Eurocontrol (2013) undertook a survey of 108 European airports responsible
for 83 per cent of total European flights and found that only 17 per cent
were planning a capacity increase by 2035, which was viewed as inadequate
to cope with the forecast demand.

1.5 Airport financial characteristics

Whilst all of this book is focused on airport finance, it is useful at the start to
identify some basic financial characteristics of airports. Firstly, airports have
fixed infrastructure which involves long-term investment, which is both physic-
ally and financially ‘lumpy’ and does not usually have alternative uses. They
are less substitutable than airlines, although the degree of competition that
exists between airports has increased significantly in recent years. They have
high fixed costs, being capital-intensive businesses, and many of their operating
costs, particularly associated with safety and security, are fixed and unavoidable
in the short-term, or vary little with the scale of operations. Meanwhile many
of the airport revenues increase with traffic volume. So financially it may be
advantageous for airports to handle more traffic if they have the capacity as
the revenue benefits may well exceed the increased costs, but on the other
hand if traffic falls and there are revenue losses, these may well translate
disproportionately into reduced profits (Copenhagen Economics, 2012).
Secondly, airports generate revenues from two major sources, namely
aeronautical and non-aeronautical, with the commercial airport paradigm
which has replaced the traditional public sector airport model changing
 Introduction  11
the balance between these two different revenue sources and giving non-
aeronautical revenues much greater prominence. Overall airports can be
considered as two-sided businesses, such as with credit cards or newspapers,
where the businesses provide platforms for two distinct sets of customers
who both gain from being networked through the platform. Airports
serve both passengers and airlines and the positive interdependence between
these two markets means that airport operators will be incentivised to
compete for airline traffic and passengers as these will influence both their
aeronautical and non-aeronautical revenue. If passengers stay away this will
affect the airlines who might have to leave the airport. If airlines reduce or
withdraw their services, this will reduce passenger numbers and consequently
the non-aeronautical sales (Gillen, 2011).
Thirdly, the airport industry overall has relatively healthy profit margins.
Table 1.3 shows the operating margin (operating profit including depreciation

Table 1.3 Financial performance of top 20 airport groups by revenue 2014

Airport operator Country Total revenues Operating

(US$m) margin (%)

Heathrow Airport Holdings UK 4,425 3.7

AENA Aeropuertos Spain 4,172 33.2
Aeroports de Paris France 3,679 26.2
Fraport Germany 3,156 20.2
Port Authority of New York USA 2,479 34.5
& New Jersey
Hong Kong International Hong Kong 2,111 54.3
Airport
Schiphol Group The Netherlands 1,943 27.3
Narita International Airport Japan 1,834 19.0
Corporation
Avinor Norway 1,674 21.6
Incheon International South Korea 1,664 49.7
Airport Company
Changi Airport Group Singapore 1,661 43.7 (2013)
Munich Airport Germany 1,582 22.1
Japan Airport Terminal Japan 1,566 5.7
Airports Authority of India India 1,514 30.1
New Kansai International Japan 1,388 28.8
Airport Company
State Airports Authority Turkey 1,381 43.5
(Turkey)
TAV Airports Turkey 1,296 32.6
Infraero Brazil 1,267 –25.6
Beijing Capital International China 1,241 31.2
Airport Group
Airports of Thailand Thailand 1,230 38.4
Source: Airline Business (2015).
12  Introduction

Figure 1.6 Operating margin at top 100 airport groups 2004–2014 (%)
Source: Airline Business (2008, 2015).

as a percentage of total revenues) for the 20 top airport groups by revenue

in 2014 and for the vast majority of them an operating margin in excess
of 20 per cent was achieved. Moreover Figure 1.6 shows the operating
margin for the largest 100 airport companies for the last ten years. Whilst
the margins have fluctuated and fallen in years when the external environ-
ment has been difficult, notably in 2008 and 2009, generally the margins
have remained sound. They are much higher than the airline industry which
achieved a global operating margin of 5.5 per cent in 2015 (IATA, 2015b),
and even this airline figure is higher than in many years. This reflects many
factors including the less intensive competitive circumstances for airports,
different cost and revenue structures, and so generally the lower inherent
financial and business risks of airports, which also reduces the cost of capital
(Tretheway and Markhvida, 2013).
However, a different situation exists with smaller airports. For example
within Europe, the European Commission (EC)’s view (which is further
discussed in Chapter 9) is that airports under 1 million passengers find it hard
to cover all of their operating costs, let alone their capital costs. At a size of
3–5 million they should be able to cover all their costs to a large extent,
whereas beyond 5 million they should be profitable (EC, 2014a). The latest
financial results of the European airports for 2013 published by ACI-Europe
support the EC’s view of this challenging financial situation. For airports
handling 3–5 million annual passengers, 14 per cent were loss-making both
in operating and net profit terms. The corresponding shares for airports
handling 1–3 million passengers were 16 and 35 per cent, respectively. These
proportions increased dramatically for airports handling less than 1 million
 Introduction  13
passengers, with 79 per cent of these recording an operating loss and with
77 per cent experiencing a net loss (ACI-Europe, 2015b).
There is evidence to show that the same situation exists for airports in
other regions. As a result, because there are many more smaller airports
than larger airports in the world (ACI estimates that over 80 per cent of
airports have traffic of less than 1 million passengers per annum) there is
an overall situation in the industry where the net profits of a minority of
large airports exceed the net losses of the majority of smaller airports. In
fact over 98 per cent of the recorded net losses in 2013 were for airports
of traffic with less than 5 million, with 93 per cent being for airports with
less than 1 million (ACI, 2015b). The reasons for this situation are discussed
in further detail in Chapter 2 but this is primarily because small airports
have insufficient traffic to drive down costs and achieve economies of scale,
or to exploit non-aeronautical revenue generation opportunities. The fixed
costs associated with providing large infrastructure such as runways and
terminals are very difficult to cover until a certain critical mass (generally
argued to be at least 1 million) is achieved. However, for some markets,
such as the UK, there is contradictory evidence that even small airports
can make reasonable profits in certain market conditions (Starkie, 2008a).
The challenging financial conditions for smaller airports are one of the
reasons why it is quite common to find groups of airports, or all airports, in
a certain region or country operated as a system, with the profitable larger
airports cross-subsidising the losses of smaller airports. Examples of such
systems can be found in numerous places such as Scandinavia (Avinor –
Norway, Swedavia – Sweden, Finnavia – Finland), and other countries such
as Argentina, Thailand and Malaysia. In Brazil 73 per cent of airports operated
by the Brazilian airport organisation Infraero reported net losses and the
corresponding figure for the Airports Authority of India was 74 per cent
(ACI, 2015b). Figures 1.7 and 1.8 illustrate the situation for AENA, the
Spanish operator that operates over 45 airports. It may be seen that only 16
of these had positive operating margins.

1.6 Airport business models

One of the key results of the deregulation and privatisation developments
for airlines has been changes to the structure of the airline industry and the
emergence of completely new and significantly modified airline business
models, which in turn has had a considerable impact on the structure of the
airport industry. Instability associated with airline structures has produced
more uncertainty for airports, as they cope with the modern-day airline
business models, more airline consolidation and new route networks which
have emerged. For airports this has had an impact on aeronautical charging,
non-aeronautical revenues and costs, as well as on the airport–airline
relationship. It has meant that the days when airports offered a fairly common
14  Introduction

Figure 1.7 Operating profits at AENA Spanish airports 2014 (u millions)

Source: AENA (2015).

set of services and facilities with a ‘one-size-fits-all’ approach seem definitely

behind them.
There has been the emergence of the large network (or legacy) carriers
such as British Airways, Air France, Lufthansa, Cathay Pacific and Singapore
Airlines that concentrate on long-haul operations and large hub operations.
These may have consolidated their operations by being a member of one of
the three global alliances (Star, oneworld and Skyteam) and/or by participat-
ing in airline joint ventures, either within an alliance which is common on
the transatlantic and transpacific routes, or outside alliances, with a notable
example being the ten-year joint venture agreement between Emirates and
Qantas. Consolidation has also occurred with mergers and acquisitions,
either domestically (e.g. American/US Airways, Air India/Indian Airlines,
Olympic/Aegean) or internationally (e.g. British Airways and Iberia, LAN
and TAM).
This consolidation has brought both opportunities and challenges to air-
ports. It can bring access to larger markets and a chance to serve more wide-
spread destinations. However, in order to operate as an effective hub for such
large-scale operations, such major airports need to ensure that they fully
serve the needs of such airlines, for example by being capable of handling all
aircraft types and effectively managing transfer traffic with reliable and
appropriate infrastructure and competitive minimum connect times (MCTs).
Many large hubs also have to be able to satisfy the needs of global alliances
Another random document with
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the receipt of a letter from Mr Coventry, a respectable farmer in the
neighbourhood, in which that gentleman offered to engage their son
for a few years, as a companion and tutor to his children. This was an
offer which his parents were too prudent to reject, particularly as it
might prove the means of future patronage as well as of present
emolument. It was therefore immediately agreed upon, that William
should himself be the bearer of their letter of acceptance, and
proceed forthwith to his new residence. On this occasion he was
admonished anew; but the advices were different from those
formerly given, and were delivered by a different person. His mother
was now the principal speaker; and, instead of warning him against
the snares that are laid for youth in a great city, she furnished him
with some rude lessons on the principles of good-breeding,
descending to a number of particulars too minute to be enumerated
here. William listened to her harangue with becoming reverence and
attention, and on the following morning, for the first time, bade
farewell to his affectionate parents.
On the afternoon of the same day, he arrived at Daisybank, where
he was welcomed with the greatest cordiality. His appearance was
genteel and prepossessing, and it was not long before his new friends
discovered, that the slight degree of awkwardness which at first clung
to his manners, proceeded more from bashfulness and
embarrassment than natural rusticity. But as he began to feel himself
at home, this embarrassment of manner gradually gave place to an
easy but unobtrusive politeness. Indeed it would not have been easy
for a youth of similar views, at his first outset in life, to have fallen
into more desirable company. Mr and Mrs Coventry were proverbial
among their neighbours for the simplicity and purity of their
manners, and they had laboured, not unsuccessfully, to stamp a
similar character upon the minds of their children. Their family
consisted of two sons and two daughters, the former of whom were
confided to the care of William.
Mary, the eldest of the four, now in her sixteenth or seventeenth
year, was in every respect the most interesting object at Daisybank.
To a mind highly cultivated for her years, she united many of those
personal graces and attractions which command little homage in the
crowd, but open upon us in the shade of retirement, and lend to the
domestic circle its most irresistible charms. In stature she scarcely
reached the middle size. To the beauty derived from form and colour
she had few pretensions; yet when her fine blue eyes moistened with
a tear at a tale of distress, or beamed an unaffected welcome to the
stranger or the friend, he must have been more or less than man who
felt not for her a sentiment superior to admiration. Hers, in a word,
was the beauty of expression—the beauty of a mind reflected, in
which the dullest disciple of Lavater could not for a moment have
mistaken her real character. Her education had been principally
conducted under the eye of her parents, and might be termed
domestic rather than fashionable. Not that she was entirely a
stranger to those acquirements which are deemed indispensable in
modern education. She had visited occasionally the great metropolis,
though, owing to the prudent solicitude of her parents, her residence
there had been comparatively short, yet probably long enough to
acquire all its useful or elegant accomplishments, without any
admixture of its fashionable frivolities.
From this hasty portraiture of Miss Coventry, it will be easily
believed that it was next to impossible for a youth nearly of the same
age, and not dissimilar in his dispositions, to remain long insensible
to charms that were gradually maturing before his eyes, and
becoming every day more remarkable. Fortunately, however, the idea
of dependence attached to his situation, and a temper naturally
diffident determined him to renounce for ever a hope which he
feared in his present circumstances would be deemed ungrateful and
even presumptuous. But this was waging war with nature, a task
which he soon found to be above his strength. He had now, therefore,
to abandon the hope of victory for the safety of retreat, and content
himself with concealing those sentiments he found it impossible to
subdue. Yet so deceitful is love, that even this modest hope was
followed with disappointment. One fine evening in June, when he
was about to unbend from the duties of the day, and retire to muse
on the amiable Mary, he encountered the fair wanderer herself, who
was probably returning from a similar errand. He accosted her in
evident confusion; and, without being conscious of what he said,
invited her to join him in a walk to a neighbouring height. His
request was complied with in the same spirit it had been made in, for
embarrassment is often contagious, particularly the embarrassment
arising from love. On this occasion he intended to summon up all his
powers of conversation, and yet his companion had never found him
so silent. Some commonplace compliments to the beauty of the
evening were almost the only observations which escaped his lips,
and these he uttered more in the manner of a sleep-walker than a
lover. They soon reached the limit of their walk, and rested upon an
eminence that commanded the prospect of an extensive valley below.
Day was fast declining to that point which is termed twilight, when
the whole irrational creation seem preparing for rest, and only man
dares to intrude upon the silence of nature. Miss Coventry beheld the
approach of night with some uneasiness, and dreading to be seen
with William alone, she began to rally him upon his apparent
absence and confusion, and proposed that they should immediately
return to the house. At mention of this, William started as from a
dream, and being unable longer to command his feelings, he
candidly confessed to her the cause of his absence and dejection. He
dwelt with much emotion upon his own demerit, and voluntarily
accused himself for the presumption of a hope which he never meant
to have revealed until the nearer accomplishment of his views had
rendered it less imprudent and romantic. He declared that he would
sooner submit to any hardship that incur the displeasure of her
excellent parents, and entreated that, whatever were her sentiments
with regard to the suit he was so presumptuous as to prefer, she
might assist him in concealing from them a circumstance which he
feared would be attended with that consequence. To this tender and
affectionate appeal, the gentle Mary could only answer with her sighs
and blushes. She often indeed attempted to speak, but the words as
often died upon her lips, and they had nearly reached home before
she could even whisper an answer to the reiterated question of her
lover. But she did answer at last; and never was a monarch more
proud of his conquest, or the homage of tributary princes, than
William was of the simple fealty of the heart of Mary.
In the bosom of this happy family William now found his hours
glide away so agreeably that he looked forward with real regret to the
termination of his engagement. His condition was perhaps one of
those in which the nearest approach is made to perfect happiness;
when the youthful mind, unseduced by the blandishments of
ambition, confines its regards to a few favourite objects, and dreads a
separation from them as the greatest of evils. The contrast between
the patriarchal simplicity of his father’s fireside, and the comparative
elegance of Mr Coventry’s parlour, for a season dazzled him with its
novelty; while the ripening graces of Mary threw around him a
fascination which older and more unsusceptible minds than his
might have found it difficult to resist. In his domestic establishment
Mr Coventry aimed at nothing beyond comfort and gentility. William
was therefore treated in every respect as an equal, and was never
banished from his patron’s table to make room for a more important
guest, or condemned to hold Lent over a solitary meal, while the
family were celebrating a holiday.
All our ideas are relative, and we estimate every thing by
comparison. Upon this principle, William thought no female so
lovely or amiable as Miss Coventry, and no residence so delightful as
Daisybank. And he would not have exchanged his feelings, while
seated on a winter evening amidst his favourite circle, scanning, for
their amusement, a page of history, or the columns of a newspaper,
while the snugness and comfort that reigned within made him forget
the storm that pelted without, for the most delicious paradise an
eastern imagination ever painted.
It will thus readily be imagined, that the saddest day of our tutor’s
life was that on which he parted from this amiable family. He had
here, he believed, spent the happiest moments of his existence, and
instead of rejoicing that he had passed through one stage of his
apprenticeship, he dwelt upon the past with pleasure, and looked
forward to the future with pain.
Fortune, however, presented an insuperable obstacle to his
spending his days in the inaction of private study; and he knew that
he could neither gain, nor deserved to gain, the object of his
affection, without establishing himself in life, by pursuing the course
which had been originally chalked out to him. After, therefore,
“pledging oft to meet again,” he bade adieu to Daisybank, loaded
with the blessings of the best of parents, and followed with the
prayers of the best of daughters. He now paid a farewell visit to his
own parents; and, after remaining with them a few days, he
proceeded to Edinburgh, and for a short period felt his melancholy
relieved, by the thousand novelties that attract the notice of a
stranger in a great city. But this was only a temporary relief, and as
he had no friend in whom he could confide, he soon felt himself
solitary in the midst of thousands. Often, when the Professor was
expatiating upon the force of the Greek particles, his imagination
was hovering over the abodes he had forsaken; and frequently it
would have been more difficult for him to have given an account of
the lectures he had been attending, than to have calculated the
probability of what was passing at a hundred miles’ distance. But this
absence and dejection at last wore off; and as he possessed good
natural talents, and had been an industrious student formerly, he
soon distinguished himself in his classes, and before the usual period
was engaged as a tutor in one of the best families in Scotland.
This event formed another important era in his life. His prospects
were now flattering; and as vanity did not fail to exaggerate them, he
soon dropped a considerable portion of his humility, and began to
regard himself as a young man of merit, to whom fortune was lavish
of her favours. In his leisure hours he was disposed to mingle much
in society, and, as his manners and address were easy and engaging,
scarcely a week elapsed that that did not add to the number of his
friends. The affections, when divided into many channels, cannot run
deep in any, and, probably, for every new acquaintance whom
William honoured with his esteem, it required a sacrifice of
friendship at the expense of love, and produced some abatement of
that devotion of soul which accompanies every true and permanent
attachment. At Daisybank he had seen a simple favourite of the
graces, but here he beheld the daughters of wealth and of fashion,
surrounded with all the gloss of art, and soon began to waver in his
attachment, and even to regard his engagement as little more than a
youthful frolic. Still this temper of mind was not attained without
many struggles between love and ambition, honour and interest; nor
could he ever for a moment commune with himself, without feeling
remorse for his inconstancy and ingratitude. He could not annihilate
the conviction, that Miss Coventry was as faithful and worthy as ever,
and had she been present to appeal to his senses, it is probable he
might have been preserved from the crime of apostasy. But these
were fits of reflection and repentance which repetition soon deprived
of their poignancy. The world, the seductive world, returned with all
its opiates and charms, to stifle in his bosom the feelings of honour,
and obliterate every trace of returning tenderness. After this he
became less punctual in his correspondence with Miss Coventry, and
in place of anticipating the arrival of her letters, as he was wont to
do, he allowed them to be sent slowly to his lodgings, opened them
without anxiety, and read them without interest. Of all this
inconstancy, ingratitude, and neglect, the simple Mary remained a
silent, though not unconcerned spectator. Kind and generous by
nature, and judging of others by herself, she framed a thousand
excuses for his negligence; and when he did condescend to write to
her, answered him as though she had been unconscious of any
abatement in his attentions.
Matters remained in this uncertain state for the space of three long
years—at least they seemed long to Miss Coventry—when William
received his licence as a preacher. He now therefore thought of
redeeming a pledge he had given to the minister of his native parish,
to make his first public appearance in his pulpit; and after giving due
intimation, he departed for the parish of ——, with his best sermon in
the pocket of his best coat. The account of his visit spread with
telegraphic despatch, long before telegraphs were invented, and was
known over half the county many days before his arrival. This was
another great and eventful day for his mother. She blessed
Providence that she had lived to see the near fulfilment of her most
anxious wish, and rising a little in her ambition, thought she could
now die contented, if she should see him settled in a living of his
own, and be greeted by her neighbours with the envied name of
grandmother.—As William was expected to dine with his parents on
his way to the parsonage, or, as it is called in Scotland, the manse, of
——, great preparations were made for his reception, and for the
appearance of the whole family at church on the following Sunday.
Mrs Arbuthnot drew from the family-chest her wedding-gown, which
had only seen the sun twice during thirty summers; and her
husband, for the first time, reluctantly applied a brush to his holiday
suit, which appeared, from the antiquity of its fashion, to have
descended, like the garments of the Swiss, through many successive
generations of the Arbuthnots.
The little church of H—— was crowded to the door, perhaps for the
first time, long before the bellman had given the usual signal. Mr
Coventry, though residing in a different parish, had made a journey
thither with several of his family, for the purpose of witnessing the
first public appearance of his friend. In this party was the amiable
Mary, who took a greater interest in the event than any one, save the
preacher, was aware of.
 William, on this occasion, recited a well written discourse with
ease and fluency, and impressed his audience with a high opinion of
his talents and piety. Some of the elder of them, indeed, objected to
his gestures and pronunciation, which they thought “new fangled”
and theatrical; but they all agreed in thinking him a clever lad, and a
great honour to his parents. His mother was now overwhelmed with
compliments and congratulations from all quarters, which she
received with visible marks of pride and emotion. Mr Coventry
waited in the churchyard till the congregation had retired, to salute
his friend, and invite him to spend a few days at Daisybank. Mary,
who hung on her father’s arm, curtsied, blushed, and looked down.
She had no well-turned compliment to offer on the occasion, but her
eyes expressed something at parting, which once would have been
sweeter to his soul than the applause of all the world beside.
Ambition, from the beginning, has been the bane of love. War and
peace are not more opposite in their nature and effects than those
rival passions, and the bosom that is agitated with the cares of the
one has little relish for the gentle joys of the other. William beheld in
the person of Miss Coventry all he had been taught to regard as
amiable or estimable in woman; but the recollection of the respect
that had been shown him by females of distinction, mixed with
exaggerated notions of his own merit, made him undervalue those
simple unobtrusive graces he once valued so highly, and think almost
any conquest easy after he had been settled in the rich living of B——,
which had been promised him by his patron.
On the following day he paid a visit to Daisybank, and received the
most cordial welcome from a family who sympathised almost equally
with his parents in his prospects and advancement. During his stay
there, he had frequent opportunities of seeing Miss Coventry alone,
but he neglected, or rather avoided them all; and when rallied on the
subject of marriage, declaimed on the pleasures of celibacy, and
hinted, with a good deal of insincerity, his intention of living single.
Although these speeches were like daggers to the mind of her who
regretted she could not rival him in inconstancy and indifference,
they produced no visible alteration in her behaviour. Hers was not
one of those minds in which vanity predominates over every other
feeling, and where disappointment is commonly relieved by the
hatred or resentment which it excites. Her soul was soft as the
passion that enslaved it, and the traces of early affection are not
easily effaced from a mind into which the darker passions have never
entered.
William bade adieu to Miss Coventry without dropping one word
upon which she could rear the superstructure of hope, and carried
with him her peace of mind, as he had formerly carried with him her
affections. From that hour she became pensive and melancholy, in
spite of all her efforts to appear cheerful and happy. She had rejected
many lovers for the inconstant’s sake, but that gave her no concern.
Her union with him had been long the favourite object of her life,
and she could have patiently resigned existence, now that its object
was lost. But she shuddered at the thought of the shock it would give
her affectionate parents, for the softer feelings of our nature are all of
one family, and the tenderest wives have ever been the most dutiful
daughters.
It was impossible for Mary long to conceal the sorrow which
consumed her. Her fading cheeks and heavy eyes gave daily
indications of what her lips refused to utter. Her parents became
deeply alarmed at these symptoms of indisposition, and anxiously
and unceasingly inquired into the cause of her illness; but her only
answer was, that she felt no pain. The best physicians were
immediately consulted upon her case, who recommended change of
air and company; but all these remedies were tried without effect.
The poison of disappointment had taken deep root in her heart, and
defied the power of medicine.
Her attendants, when they found all their prescriptions ineffectual,
began to ascribe her malady to its real cause, and hinted to her
parents their apprehensions that she had been crossed in love. The
good people, though greatly surprised at the suggestion, had too
much prudence to treat it with indifference, and they left no means
untried, consistent with a regard for the feelings of their child, to wile
from her the important secret. At first she endeavoured to evade
their inquiries; but finding it impossible to allay their apprehensions
without having recourse to dissimulation, she confessed to her
mother her attachment to William, concealing only the promises he
had made to her, and every circumstance that imputed to him the
slightest degree of blame. At the same time she entreated them, with
the greatest earnestness, that no use might be made of a secret which
she wished to have carried with her to the grave. This was a hard task
imposed upon her parents. They felt equally with herself the extreme
delicacy of making the disclosure; but, on the other hand, they
contemplated nothing but the probable loss of their child; an event,
the bare apprehension of which filled their minds with the bitterest
anguish. After many anxious consultations, Mr Coventry determined,
unknown to any but his wife, to pay a visit to William, and ascertain
his sentiments with regard to his daughter.
Upon his arrival at Edinburgh, he found that his friend had
departed for the manse of B——, with which he had been recently
presented. This event, which in other circumstances would have
given him the liveliest pleasure, awakened on this occasion emotions
of a contrary nature, as he feared it would make his now reverend
friend more elevated in his notions, and consequently more averse to
a union with his daughter. He did not, however, on that account
conceal the real object of his journey, or endeavour to accomplish his
purpose by stratagem or deceit. He candidly disclosed his daughter’s
situation and sentiments, requesting of his friend that he would open
to him his mind with equal candour; and added, that although he
held wealth to be an improper motive in marriage, and hoped that
his daughter did not require such a recommendation, in the event of
this union, whatever he possessed would be liberally shared with
him.
On hearing of the situation of Miss Coventry, William became
penetrated with the deepest remorse; and being aware that his
affection for her was rather stifled than estranged, he declared his
willingness to make her his wife. These words operated like a charm
upon the drooping spirits of the father, who embraced his friend with
ardour, and besought him immediately to accompany him home,
that they might lose no time in making a communication, which he
fondly hoped would have a similar effect upon the spirits of his
daughter.
They departed accordingly together, indulging in the pleasing hope
that all would yet be well; but on their arrival at Daisybank, they
were seriously alarmed to hear that Miss Coventry had been
considerably worse since her father left home. She was now entirely
confined to her chamber, and seemed to care for nothing so much as
solitude, and an exemption from the trouble of talking. As soon as
she was informed of the arrival of their visitor, she suspected he had
been sent for, and therefore refused to see him; but upon being
assured by her mother, who found deceit in this instance
indispensable, that his visit was voluntary and accidental, she at last
consented to give him an interview.
On entering the room, which had formerly been the family parlour,
William was forcibly struck with the contrast it exhibited. Every
object seemed to swim before his sight, and it was some moments
before he discovered Miss Coventry, who reclined upon a sofa at the
farther end of the room. He advanced with a beating heart, and
grasped the burning hand that was extended to meet him. He
pressed it to his lips and wept, and muttered something incoherent
of forgiveness and love. He looked doubtingly on Mary’s face for an
answer,—but her eye darted no reproach, and her lips uttered no
reflection. A faint blush, that at this moment overspread her cheek,
seemed a token of returning strength, and inspired him with
confidence and hope. It was the last effort of nature,—and ere the
blood could return to its fountain, that fountain had closed for ever.
Death approached his victim under the disguise of sleep, and
appeared divested of his usual pains and terrors.
William retired from this scene of unutterable anguish, and for a
long period was overwhelmed with the deepest melancholy and
remorse. But time gradually softened and subdued his sorrow, and I
trust perfected his repentance. He is since married and wealthy, and
is regarded by the world as an individual eminently respectable and
happy. But, amidst all his comforts, there are moments when he
would exchange his identity with the meanest slave that breathes,
and regards himself as the murderer of Mary Coventry.—J. M‘D., in
Blackwood’s Magazine, 1817.
 ADAM BELL.

By James Hogg, the “Ettrick Shepherd.”

This tale, which may be depended on as in every part true, is

singular, from the circumstance of its being insolvable, either from
the facts that have been discovered relating to it, or by reason; for
though events sometimes occur among mankind, which at the time
seem inexplicable, yet there being always some individuals
acquainted with the primary causes of these events, they seldom fail
of being brought to light before all the actors in them, or their
confidants, are removed from this state of existence. But the causes
which produced the events here related have never been accounted
for in this world; even conjecture is left to wander in a labyrinth,
unable to get hold of the thread that leads to the catastrophe.
Mr Bell was a gentleman of Annandale, in Dumfriesshire, in the
south of Scotland, and proprietor of a considerable estate in that
district, part of which he occupied himself. He lost his father when he
was an infant, and his mother dying when he was about 20 years of
age, left him the sole proprietor of the estate, besides a large sum of
money at interest, for which he was indebted, in a great measure, to
his mother’s parsimony during his minority. His person was tall,
comely, and athletic, and his whole delight was in warlike and violent
exercises. He was the best horseman and marksman in the county,
and valued himself particularly upon his skill in the broad sword. Of
this he often boasted aloud, and regretted that there was not one in
the county whose skill was in some degree equal to his own.
In the autumn of 1745, after being for several days busily and
silently employed in preparing for his journey, he left his own house,
and went to Edinburgh, giving at the same time such directions to his
servants as indicated his intention of being absent for some time.
A few days after he had left his home, one morning, while his
housekeeper was putting the house in order for the day, her master,
as she thought, entered by the kitchen door, the other being bolted,
and passed her in the middle of the floor. He was buttoned in his
greatcoat, which was the same he had on when he went from home;
he likewise had the same hat on his head, and the same whip in his
hand which he took with him. At sight of him she uttered a shriek,
but recovering her surprise, instantly said to him, “You have not
stayed so long from us, Sir.” He made no reply, but went sullenly into
his own room, without throwing off his greatcoat. After a pause of
about five minutes, she followed him into the room. He was standing
at his desk with his back towards her. She asked him if he wished to
have a fire kindled, and afterwards if he was well enough; but he still
made no reply to any of these questions. She was astonished, and
returned into the kitchen. After tarrying about other five minutes, he
went out at the front door, it being then open, and walked
deliberately towards the bank of the river Kinnel, which was deep
and wooded, and in that he vanished from her sight. The woman ran
out in the utmost consternation to acquaint the men who were
servants belonging to the house; and coming to one of the
ploughmen, she told him that their master was come home, and had
certainly lost his reason, for that he was wandering about the house
and would not speak. The man loosed his horses from the plough
and came home, listened to the woman’s relation, made her repeat it
again and again, and then assured her that she was raving, for their
master’s horse was not in the stable, and of course he could not be
come home. However, as she persisted in her asseveration with every
appearance of sincerity, he went into the linn to see what was
become of his mysterious master. He was neither to be seen nor
heard of in all the country. It was then concluded that the
housekeeper had seen an apparition, and that something had
befallen their master; but on consulting with some old people, skilled
in those matters, they learned that when a “wraith,” or apparition of
a living person, appeared while the sun was up, instead of being a
prelude of instant death, it prognosticated very long life; and,
moreover, that it could not possibly be a ghost that she had seen, for
they always chose the night season for making their visits. In short,
though it was the general topic of conversation among the servants
and the people in the vicinity, no reasonable conclusion could be
formed on the subject.
The most probable conjecture was, that as Mr Bell was known to
be so fond of arms, and had left his home on the very day that Prince
Charles Stuart and his Highlanders defeated General Hawley on
Falkirk Muir, he had gone either with him or the Duke of
Cumberland to the north. It was, however, afterwards ascertained,
that he had never joined any of the armies. Week passed after week,
and month after month, but no word of Mr Bell. A female cousin was
his nearest living relation; her husband took the management of his
affairs; and concluding that he had either joined the army, or
drowned himself in the Kinnel, when he was seen go into the linn,
made no more inquiries after him.
About this very time, a respectable farmer, whose surname was
M‘Millan, and who resided in the neighbourhood of Musselburgh,
happened to be in Edinburgh about some business. In the evening he
called upon a friend who lived near Holyrood-house; and being
seized with an indisposition, they persuaded him to tarry with them
all night. About the middle of the night he grew exceedingly ill, and
not being able to find any rest or ease in his bed, imagined he would
be the better of a walk. He put on his clothes, and, that he might not
disturb the family, slipped quietly out at the back door, and walked
in St Anthony’s garden behind the house. The moon shone so bright,
that it was almost as light as noonday, and he had scarcely taken a
single turn, when he saw a tall man enter from the other side,
buttoned in a drab-coloured greatcoat. It so happened, that at that
time M‘Millan stood in the shadow of the wall, and perceiving that
the stranger did not observe him, a thought struck him that it would
not be amiss to keep himself concealed, that he might see what the
man was going to be about. He walked backwards and forwards for
some time in apparent impatience, looking at his watch every
minute, until at length another man came in by the same way,
buttoned likewise in a greatcoat, and having a bonnet on his head.
He was remarkably stout made, but considerably lower in stature
than the other. They exchanged only a single word; then turning both
about, they threw off their coats, drew their swords, and began a
most desperate and well-contested combat.
 The tall gentleman appeared to have the advantage. He constantly
gained ground on the other, and drove him half round the division of
the garden in which they fought. Each of them strove to fight with his
back towards the moon, so that it might shine full in the face of his
opponent; and many rapid wheels were made for the purpose of
gaining this position. The engagement was long and obstinate, and
by the desperate thrusts that were frequently aimed on both sides, it
was evident that they meant one another’s destruction. They came at
length within a few yards of the place where M‘Millan still stood
concealed. They were both out of breath, and at that instant a small
cloud chancing to overshadow the moon, one of them called out,
“Hold, we cannot see.” They uncovered their heads, wiped their
faces, and as soon as the moon emerged from the cloud, each
resumed his guard. Surely that was an awful pause! And short,
indeed, was the stage between it and eternity with the one! The tall
gentleman made a lounge at the other, who parried and returned it;
and as the former sprung back to avoid the thrust, his foot slipped,
and he stumbled forward towards his antagonist, who dexterously
met his breast in the fall with the point of his sword, and ran him
through the body. He made only one feeble convulsive struggle, as if
attempting to rise, and expired almost instantaneously.
M‘Millan was petrified with horror; but conceiving himself to be in
a perilous situation, having stolen out of the house at that dead hour
of the night, he had so much presence of mind as to hold his peace,
and to keep from interfering in the smallest degree.
The surviving combatant wiped his sword with great composure;—
put on his bonnet, covered the body with one of the greatcoats, took
up the other, and departed. M‘Millan returned quietly to his chamber
without awakening any of the family. His pains were gone, but his
mind was shocked and exceedingly perturbed; and after deliberating
until morning, he determined to say nothing of the matter, and to
make no living creature acquainted with what he had seen, thinking
that suspicion would infallibly rest on him. Accordingly, he kept his
bed next morning, until his friend brought him the tidings that a
gentleman had been murdered at the back of the house during the
night. He then arose and examined the body, which was that of a
young man, seemingly from the country, having brown hair, and fine
manly features. He had neither letter, book, nor signature of any
kind about him that could in the least lead to a discovery of who he
was; only a common silver watch was found in his pocket, and an
elegant sword was clasped in his cold bloody hand, which had an A.
and B. engraved on the hilt. The sword had entered at his breast, and
gone out at his back a little below the left shoulder. He had likewise
received a slight wound on the sword arm.
The body was carried to the dead-room, where it lay for eight days,
and though great numbers inspected it, yet none knew who or
whence the deceased was, and he was at length buried among the
strangers in Grayfriars churchyard.
Sixteen years elapsed before M‘Millan mentioned to any person
the circumstance of his having seen the duel, but at that period,
being in Annandale receiving some sheep that he had bought, and
chancing to hear of the astonishing circumstances of Bell’s
disappearance, he divulged the whole. The time, the description of
his person, his clothes, and above all, the sword with the initials of
his name engraved upon it, confirmed the fact beyond the smallest
shadow of doubt that it was Mr Bell whom he had seen killed in the
duel behind the Abbey. But who the person was that slew him, how
the quarrel commenced, or who it was that appeared to his
housekeeper, remains to this day a profound secret, and is likely to
remain so, until that day when every deed of darkness shall be
brought to light.
Some have even ventured to blame McMillan for the whole, on
account of his long concealment of facts, and likewise in
consideration of his uncommon bodily strength and daring
disposition, he being one of the boldest and most enterprising men of
the age in which he lived; but all who knew him despised such
insinuations, and declared them to be entirely inconsistent with his
character, which was most honourable and disinterested; and
besides, his tale has every appearance of truth. “Pluris est oculatus
testis unus quam auriti decem.”
 MAUNS’ STANE; OR, MINE HOST’S TALE.

In the latter end of the autumn of ——, I set out by myself on an

excursion over the northern part of Scotland; and, during that time,
my chief amusement was to observe the little changes of manners,
language, &c., in the different districts. After having viewed, on my
return, the principal curiosities in Buchan, I made a little alehouse,
or “public,” my head-quarters for the night. Having discussed my
supper in solitude, I called up mine host to enable me to discuss my
bottle, and to give me a statistical account of the country around me.
Seated in the “blue” end, and well supplied with the homely but
satisfying luxuries which the place afforded, I was in an excellent
mood for enjoying the communicativeness of my landlord; and, after
speaking about the cave at Slaines, the state of the crop, and the
neighbouring franklins, edged him, by degrees, to speak about the
Abbey of Deer, an interesting ruin which I had examined in the
course of the day, formerly the stronghold of the once powerful
family of Cummin.
“It’s dootless a bonny place about the Abbey,” said he, “but
naething like what it was when the great Sir James the Rose cam to
hide i’ the Buchan woods, wi’ a’ the Grahames rampagin’ at his tail,
whilk you that’s a beuk learned man ’ill hae read o’; an’ maybe ye’ll
hae heard o’ the saughen bush where he forgathered wi’ his joe; or
aiblins ye may have seen’t, for it’s standing yet just at the corner o’
gaukit Jamie Jamieson’s peat-stack. Ay, ay, the abbey was a brave
place ance; but a’ thing, ye ken, comes till an end.” So saying, he
nodded to me, and brought his glass to an end.
“This place, then, must have been famed in days of yore, my
friend?”
“Ye may tak my word for that,” said he. “’Od, it was a place! Sic a
sight o’ fechtin’ as they had about it! But gin ye’ll gang up the trap-
stair to the laft, an’ open Jenny’s kist, ye’ll see sic a story about it,
prented by ane o’ your learned Aberdeen’s fouk, Maister Keith, I
think; she coft it in Aberdeen for twal pennies, lang ago, an’ battered
it to the lid o’ her kist. But gang up the stair canny, for fear that you
should wauken her, puir thing;—or, bide, I’ll just wauken Jamie
Fleep, an’ gar him help me down wi’t, for our stair’s no just that
canny for them ‘t’s no acquaint wi’t, let alane a frail man wi’ your
infirmity.”
I assured him that I would neither disturb the young lady’s
slumber, nor Jamie Fleep’s, and begged him to give me as much
information as he could about this castle.
“Weel, wishin’ your gude health again.—Our minister ance said,
that Soloman’s Temple was a’ in ruins, wi’ whin bushes, an’ broom
an’ thristles growin’ ower the bonny carved wark an’ the cedar wa’s,
just like our ain Abbey. Noo, I judge that the Abbey o’ Deer was just
the marrow o’t, or the minister wadna hae said that. But when it was
biggit, Lord kens, for I dinna. It was just as you see it, lang afore your
honour was born; an’ aiblins, as the by-word says, may be sae after
ye’re hanged. But that’s neither here nor there. The Cummins o’
Buchan were a dour and surly race; and, for a fearfu’ time, nane near
han’ nor far awa could ding them, an’ yet mony a ane tried it. The
fouk on their ain lan’ likit them weel enough; but the Crawfords, an’
the Grahames, an’ the Mars, an’ the Lovats, were aye trying to comb
them against the hair, an’ mony a weary kempin’ had they wi’ them;
but, some way or ither, they could never ding them; an’ fouk said that
they gaed and learned the black art frae the Pope o’ Room, wha, I
mysel heard the minister say, had aye a colleague wi’ the Auld Chiel.
I dinna ken fou it was; in the tail o’ the day, the hale country rase up
against them, an’ besieged them in the Abbey o’ Deer. Ye’ll see, my
frien’ [by this time mine host considered me as one of his cronies],
tho’ we ca’ it the Abbey, it had naething to do wi’ Papistry; na, na, no
sae bad as a’ that either, but just a noble’s castle, where they keepit
sodgers gaun about in airn an’ scarlet, wi’ their swords an’ guns, an’
begnets, an’ sentry-boxes, like the local militia in the barracks o’
Aberdeen.
“Weel, ye see, they surrounded the castle, an’ lang did they besiege
it; but there was a vast o’ meat in the castle, an’ the Buchan fouk
fought like the vera deil. They took their horse through a
miscellaneous passage, half a mile long, aneath the hill o’ Saplinbrae,
an’ watered them in the burn o’ Pulmer. But a’ wadna do; they took
the castle at last, and a terrible slaughter they made amo’ them; but
they were sair disappointed in ae partic’ler, for Cummin’s fouk sank
a’ their goud an’ siller in a draw-wall, an’ syne filled it up wi’ stanes.
They gat naething in the way of spulzie to speak o’; sae out o’ spite
they dang doon the castle, an’ it’s never been biggit to this day. But
the Cummins were no sae bad as the Lairds o’ Federat, after a’.”
“And who were these Federats?” I inquired.
“The Lairds o’ Federat?” said he, moistening his mouth again as a
preamble to his oration. “Troth, frae their deeds, ane would maist
think that they had a drap o’ the deil’s blude, like the pyets. Gin a’
tales be true, they hae the warmest place at his bink this vera minute.
I dinna ken vera muckle about them, though, but the auldest fouk
said they were just byous wi’ cruelty. Mony a gude man did they hing
up i’ their ha’, just for their ain sport; ye’ll see the ring to the fore yet
in the roof o’t. Did ye ever hear o’ Mauns’ Stane, neebour?”
“Mauns’ what?” said I.
“Ou, Mauns’ Stane. But it’s no likely. Ye see it was just a queer
clump o’ a roun’-about heathen, waghtin’ maybe twa tons or thereby.
It wasna like ony o’ the stanes in our countra, an’ it was as roun’ as a
fit-ba’; I’m sure it wad ding Professor Couplan himsel to tell what
way it cam there. Noo, fouk aye thought there was something
uncanny about it, an’ some gaed the length o’ saying, that the deil
used to bake ginshbread upon’t; and, as sure as ye’re sitting there,
frien’, there was knuckle-marks upon’t, for my ain father has seen
them as aften as I have taes an’ fingers. Aweel, ye see, Mauns
Crawford, the last o’ the Lairds o’ Federat, an’ the deil had coost out
(maybe because the Laird was just as wicked an’ as clever as he was
himsel), an’ ye perceive the evil ane wantit to play him a trick. Noo,
Mauns Crawford was ae day lookin’ ower his castle wa’, and he saw a
stalwart carl, in black claes, ridin’ up the loanin’. He stopped at this
chuckie o’ a stane, an’, loutin’ himsel, he took it up in his arms, and
lifted it three times to his saddle-bow, an’ syne he rade awa out o’
sight, never comin’ near the castle, as Mauns thought he would hae
done. ‘Noo,’ says the baron till himsel, says he, ‘I didna think that
there was ony ane in a’ the land that could hae played sic a ploy; but
deil fetch me if I dinna lift it as weel as he did.’ Sae aff he gaed, for
there was na sic a man for birr in a’ the countra, an’ he kent it as
weel, for he never met wi’ his match. Weel, he tried, and tugged, and
better than tugged at the stane, but he coudna mudge it ava; an’,
when he looked about, he saw a man at his elbuck, a’ smeared wi’
smiddy-coom, snightern’ an’ laughin’ at him. The Laird d——d him,
an’ bade him lift it, whilk he did as gin’t had been a little pinnin. The
Laird was like to burst wi’ rage at being fickled by sic a hag-ma-hush
carle, and he took to the stane in a fury, and lifted it till his knee; but
the weight o’t amaist ground his banes to smash. He held the stane
till his een-strings crackit, when he was as blin’ as a moudiwort. He
was blin’ till the day o’ his death,—that’s to say, if ever he died, for
there were queer sayings about it—vera queer! vera queer! The stane
was ca’d Mauns’ Stane ever after; an’ it was no thought that canny to
be near it after gloaming; for what says the psalm—hem!—I mean the
sang—
’Tween Ennetbutts an’ Mauns’ Stane
Ilka night there walks ane.

“There never was a chief of the family after; the men were
scattered, an’ the castle demolished. The doo and the hoodie craw
nestle i’ their towers, and the hare maks her form on their grassy
hearthstane.”
“Is this stone still to be seen?”
“Ou na. Ye see, it was just upon Johnie Forbes’s craft, an’ fouk cam
far an’ near to leuk at it, an’ trampit down a’ the puir cottar body’s
corn; sae he houkit a hole just aside it, an’ tumbled it intil’t: by that
means naebody sees’t noo, but its weel kent that it’s there, for they’re
livin’ yet wha’ve seen it.”
“But the well at the Abbey—did no one feel a desire to enrich
himself with the gold and silver buried there?”
“Hoot, ay; mony a ane tried to find out whaur it was, and, for that
matter, I’ve maybe done as foolish a thing mysel; but nane ever made
it out. There was a scholar, like yoursel, that gaed ae night down to
the Abbey, an’, ye see, he summoned up the deil.”
“The deuce he did!” said I.
“Weel, weel, the deuce, gin ye like it better,” said he. “An’ he was
gaun to question him where the treasure was, but he had eneugh to
do to get him laid without deaving him wi’ questions, for a’ the deils
cam about him, like bees bizzin’ out o’ a byke. He never coured the
fright he gat, but cried out, ‘Help! help!’ till his very enemy wad hae
been wae to see him; and sae he cried till he died, which was no that
lang after. Fouk sudna meddle wi’ sic ploys!”
“Most wonderful! And do you believe that Beelzebub actually
appeared to him?”
“Believe it! What for no?” said he, consequentially tapping the lid
of his snuff-horn. “Didna my ain father see the evil ane i’ the schule
o’ Auld Deer?”
“Indeed!”
“Weel I wot he did that. A wheen idle callants, when the dominie
was out at his twal-hours, read the Lord’s Prayer backlans, an’ raised
him, but coudna lay him again; for he threepit ower them that he
wadna gang awa unless he gat ane o’ them wi’ him. Ye may be sure
this put them in an awfu’ swither. They were a’ squallin’, an’ crawlin’,
and sprawlin’ amo’ the couples to get out o’ his grips. Ane o’ them gat
out an’ tauld the maister about it; an’ when he cam down, the melted
lead was rinnin’ aff the roof o’ the house wi’ the heat; sae, flingin’ to
the Black Thief a young bit kittlen o’ the schule-mistress’s, he sank
through the floor wi’ an awsome roar. I mysel have heard the
mistress misca’in’ her man about offering up the puir thing, baith
saul and body, to Baal. But, troth, I’m no clear to speak o’ the like o’
this at sic a time o’ night; sae, if your honour be na for anither jug, I’ll
e’en wus you a gude night, for its wearin’ late, an’ I maun awa’ to
Skippyfair i’ the mornin’.”
I assented to this, and quickly lost in sleep the remembrance of all
these tales of the olden time.—Aberdeen Censor, 1825.